Recording a customer ex gratia - non payment of invoice

Accounting
1

Hi

I have a client for whom an invoice was issued, but subsequently we discovered an error. As such I do no not expect payment for the invoice issued. How do I accurately record this. I don’t think this warrants a credit note or bad debt provisions but I am not sure.
I haven’t been able to find anything similar on the forum so any guidance is much appreciated.
Regards
Valerie

2

If it was issued in error, you can just delete it.

QuickFile will only mark as deleted and will retain a copy should you need to restore/view that invoice later.

You can filter down to all deleted invoices from the main invoice list in the bottom right corner by clicking the “deleted” option.

3

Hi

Its not that is was issued in error. The invoice was issued, prior to an error in the product being identified. As such, as a a customer ex-gratia I am not asking for the invoice to be paid subsequently.

I think I ought to note that I am not seeking payment due to an error, even though the invoice was issued.

4

Then in my opinion, given that the invoice was originally issued in good faith and known to the client, I would credit note the invoice. Either way the NET effect is is much the same, the difference being that a credit note is a sort of reversal whereas deleting it is a cancellation of the original request.

5

Hi.
That makes sense. Thank you. I wasn’t sure if a credit note was appropriate but as you have just explained; yes.
Thanks as always
Valerie

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